Investors remain optimistic, boosting risky assets and paving the way for a positive start in Asian markets on Wednesday. Indonesia’s central bank will be in focus as it announces its interest rate decision. Thailand and New Zealand will release their trade figures, while Japan will unveil its service sector producer inflation data. Australia’s consumer price inflation will also be closely watched. Despite concerns regarding Japanese authorities intervening in the currency market, the yen remains under pressure as the dollar edges closer to 155.00 yen. The Chinese yuan has also experienced depreciation, hitting a five-month low against the dollar. Indonesia’s central bank is anticipated to maintain its current interest rate, although a modest hike remains a possibility. The broader sentiment across Asian markets is expected to be upbeat, following strong performances in global markets, declining bond yields, and a weakening dollar. Encouraging earnings reports from companies like Spotify and General Motors have further fueled positive sentiment. Tesla’s revenue and earnings may have fallen short of expectations, but post-hours trading saw a surge in share prices due to the company’s announcement of expedited model launches. The recent market volatility that resulted in a 5% correction in major indices and a 10% decline in stocks like Nvidia seems to be subsiding, although caution remains warranted. Sino-U.S. tensions might resurface ahead of U.S. Secretary of State Antony Blinken’s visit to China later this week. The U.S. has reportedly explored the possibility of imposing sanctions on Chinese banks to discourage Beijing’s support for Russia.
Asian Markets Set for Positive Open as Investors Embrace Risk
